Connected TV advertising is taking digital advertising by storm. Advertising on a bigger screen with low cost, interaction with millennials, and giving creative and effective messages to potential targets are just a few of the merits of connected TV advertising.
What is Connected TV Advertising?
Connected TV or (CTV) is any TV that can be easily connected to the internet and access content. CTV includes ads that are programmatically brought and shown the user on Connected TV. This is called connected TV advertising through which many businesses can find their potential targets and flourish.
How does Connected TV Advertising Works?
Connected TV is the hybrid technology of computers and television. CTV advertising can be known as a form of private market place (PMP) deal. CTV advertising brands have their own level of price and access for advertisements and finding potential targets. They operate through multiple levels of auctions. The market place inventory sales are usually situated just one auction level above the open exchange. Thus, marketers have the chance to access specific placements to auction fewer bids and make high winning rates.
A connective TV advertising platform offers a smart way to approach potential targets. Smart TV users need to log in through their Facebook or Google accounts. This allows third party data to help gather user’s profiles, geographical location, zip code, preferences, shopping habits, browsing history, online behavior, language, etc. for programmatic advertising to reach potential targets. This precise segmentation of the audience allows advertising brands or companies to send relevant messages to the receptive audience, bringing them more value.
Why Connected TV Advertising is the Future of Advertising?
Very soon, smart TVs won’t be running without digital adds. The growing popularity of Connected TV and the expansion in the programmatic advertising technology have made CTV advertising the best platform for digital advertising.
CTV is Everywhere
With Netflix, Amazon, and Hulu producing highly popular shows, more and more people are getting Connected TV. In 2018, 60% of the US had CTV in their homes, and this number is increasing. Over 75% of the US is expected to have CTV by 2020. As households adopt Connected TV with the increasing number, this time is valuable for the video advertising boom.
Millennials Love CTV
Millennials love Netflix, and so they love CTV too. Connected TV advertising Netflix is the ultimate programmable advertising approach to reach millennials. Netflix and other television streaming services are where the young generation is concentrated as a target demographic, and savvy advertisers can focus their video advertising.
People Don’t Mind CTV Ads
Unlike traditional TV ads that interrupt the show to put on a good three to five minutes worth of ads, people do not mind a few seconds or a two-minute ad on CTV. Most CTV users understand that getting ads is part of the deal of getting entertainment and convenience at a low price.
It is Cheap and Profitable
The ability to target audiences is much higher than traditional TV advertising. CTV advertising also provides a higher return on investment, making it a shotgun approach fort advertising.
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Even though CTV advertising is the future gateway to cheap, high ROI, and effective programmatic advertising, there are few challenges in the way. But with rapid technology advancements, connected TV will make it through as the best advertising platform.